Compare SBA-backed financing options for owner-occupied commercial property in the United States—designed for long-term growth, stability, and expansion.
The U.S. Small Business Administration (SBA) supports approved lenders by providing a government guarantee, improving access to capital for qualifying small businesses—especially for owner-occupied commercial real estate.
Key Programs:
SBA 504: Designed for purchasing, constructing, or improving owner-occupied commercial property and major equipment (within program rules).
SBA 7(a): Flexible program supporting real estate financing and, depending on transaction, other eligible business needs.
While the SBA rarely lends directly, it sets program guidelines and provides the guarantee lenders rely on.
Financing for businesses buying or refinancing their own property, featuring longer terms, competitive rates, and stable underwriting for established operations.
Loans structured for income-producing properties, with underwriting focused on cash flow, DSCR, rent roll quality, operating expenses, and overall market stability.
Short-term financing for fast closings, renovations, occupancy stabilization, or property repositioning before refinancing into permanent commercial loan structures.
Financing for ground-up construction or major renovations with interest-only periods, draw schedules, and milestone-based funding aligned to project timelines.
Note: Availability and underwriting depend on lender-specific guidelines. SBA programs do not cover Canadian transactions.
Eligibility and structure depend on lender and SBA guidelines. Here’s a practical comparison:
The business must operate in the United States and meet SBA size standards
The property must be owner-occupied (generally 51% or more business use)
The business should demonstrate stable revenue and repayment ability
Owners typically provide personal guarantees as required.
Acceptable credit history and liquidity for down payment and reserves
Property and project must meet SBA eligibility and use-of-funds requirements
SBA loans follow a structured process designed to evaluate both the business and the property.
Business goals, property details, and borrower profile are reviewed for SBA alignment.
SBA 504 or SBA 7(a) structure is matched based on property use and financing needs.
Business financials, tax returns, property information, and SBA forms are gathered.
The lender underwrites the request and submits the loan for SBA authorization.
Final terms are issued, conditions are cleared, and funding is completed at closing.